The construction industry is one of the largest and most important industries in the world, contributing significantly to the economy and providing employment opportunities to millions of people. With the increasing importance of construction, it has become crucial to understand the key trends and insights in construction accounting.
In this blog post, we will discuss construction accounting statistics that will help you better understand the industry and the challenges that it faces.
Key Construction Accounting Statistics – MY Choice
Construction industry revenue: The global construction industry revenue is estimated to reach $15.5 trillion by 2023.
Cost Overruns: According to a study, up to 80% of construction projects experience cost overruns, with an average overrun of 20%.
Contractor Fraud: Contractor fraud accounts for an estimated 5% of construction costs and results in losses of approximately $5 billion annually.
Late Payments: In the US construction industry, the average payment term is around 45-60 days, with late payments affecting 40% of contractors.
Bid Accuracy: On average, construction bids are accurate within 5-10% of the final cost of the project.
Labor Shortage: In the US construction industry, there is a shortage of skilled workers, with an estimated 50,000 unfilled positions.
Materials Cost: Materials costs account for approximately 60-70% of the total cost of construction projects.
Productivity Losses: In the construction industry, productivity losses due to weather and other factors can be as high as 20-30%.
Green Building: Green building practices are estimated to save construction companies an average of 10-20% in energy and material costs.
Subcontractor Costs: Subcontractor costs account for an average of 30-40% of the total construction cost and are a significant factor in project cost management.
Construction Accounting Statistics
Construction Accounting Benefits Statistics
Reduced employee benefits
Construction Accounting Market Statistics
Small businesses failed due to no market need
Small businesses failed due to poor marketing
Construction Accounting Software Statistics
Contractors happy with modern construction software
Contractors expected to switch to construction management software
Construction Accounting Latest Statistics
Worker fatalities in construction industry in 2019
U.S. workers employed in construction in 2019
Growth of Hispanic construction workers in 2019
Worker deaths in construction
Crane related deaths involving a falling object
Construction deaths caused by falls
“Fatal Four” leading causes of construction deaths
Construction workers who miss work due to injury
Construction industry’s contribution to lost work days
Injury and illness rate in construction in 2020
24% higher than average
Construction workers who fail to report a work injury
Construction workers most likely to sustain an injury
25-34 years old
Cost of fatal construction injuries in the U.S.
Average budget spent by construction companies on injuries
Average budget spent by construction companies on safety training
Construction workers who feel productivity standards are higher than safety standards
Construction workers who need more safety training
Construction workers who worry about being injured every day
Construction accidents occurring in first year of work
Risk of COVID-19 for construction workers
Increased with new variants
Construction Accounting Industry Classification
Minimum value a share can take
Main activity must account for 50% or more of value added
Activity with largest share of value added determines classification
Small Business Failure Statistics
Small businesses failing in their first year
Small businesses failing in their second year
Small businesses failing after five years in business
Small businesses failing in their 10th year in business
Small businesses failing in their first year (Bureau of Labor Statistics)
Small businesses failing in their fifth year (Bureau of Labor Statistics)
Small businesses surviving their first year with employees
Small businesses surviving their second year with employees
Small businesses surviving their fifth year with employees
Small businesses surviving their 10th year with employees
Survival rate of small businesses across one, two, five, and ten years in business
80%, 70%, 50%, 30%
The construction industry was valued at $10.3 trillion in 2020.
The global construction market is expected to grow at a CAGR of 3.9% from 2021 to 2026.
The US construction industry accounts for over 8% of the country’s GDP.
The construction industry provides employment to over 7 million people in the US alone.
The construction industry is one of the largest consumers of raw materials in the world.
The global construction accounting software market is expected to reach $5.5 billion by 2026, growing at a CAGR of 8.9% from 2021 to 2026.
The construction industry accounts for 6% of the global GDP.
The construction accounting software market is segmented into cloud-based and on-premise solutions. Cloud-based solutions are expected to witness higher growth in the coming years.
North America dominates the global construction accounting software market, followed by Europe and Asia-Pacific.
Adoption of Construction Accounting
The adoption of construction accounting software has increased in recent years, with more and more construction companies adopting cloud-based solutions.
The use of mobile devices for construction accounting has also increased, providing contractors and project managers with real-time access to financial data.
The adoption of construction accounting software is highest in the construction and engineering industries, followed by the residential and commercial construction industries.
Table 1: Increase in African American and Hispanic Owned Businesses (2007-2012)
Table 2: Small Businesses in the United States
Composition of all firms
Composition of firms with paid employees
Employment (private workplace)
56.8 million (48%)
Jobs added in 2014 (Q1-Q3)
Jobs added by very small businesses
Contribution to net new jobs
Increase in workforce (2016)
33% of small firms
Expected increase in revenue (2016)
60% of all firms
Table 3: Workplace Fatalities in the United States (2018)
Total workplace deaths
Percentage of all work
Second most common cause
Contact with objects and equipment
Increase in incidents
13% (786 incidents)
Increase in workers caught in running equipment/machinery
Increase in workers hit by falling objects/equipment
Table 4: Key National Accounts in Australia (2020-2021)
GSP Annual Growth
Largest Industry GVA
Other Key Information
New South Wales
1.4% (following 0.6% fall in previous year)
Health Care and Social Assistance (6.5%), Agriculture, Forestry and Fishing (26.3%), Retail Trade (7.1%)
Largest increases in Administrative and Support Services GVA (9.7%), Transport Postal and Warehousing GVA (8.8%)
-0.4% (due to COVID-19)
Construction (4.6%), Administrative and Support Services (9.0%), Transport, Postal and Warehousing
Strong growth in Agriculture, Forestry and Fishing GVA (18.6%), Health Care and Social Assistance GVA (4.0%), Public Administration and Safety GVA (4.7%)
2.0% (rebounding after first fall in recorded history)
Health Care and Social Assistance GVA, Agriculture, Forestry and Fishing GVA (19.7%), Wholesale Trade GVA (12.7%), Retail Trade GVA (9.1%)
Decline in gross operating surplus and mixed income (1.7%), fall driven by Mining
3.9% (strongest result of all jurisdictions)
Agriculture, Forestry and Fishing GVA (23.8%), Manufacturing GVA (11.1%)
Private machinery and equipment GFCF rose 6.4%
Mining, Manufacturing GVA (8.7%), Agriculture, Forestry and Fishing GVA (23.1%)
Nominal GSP growth of 15.8% due to soaring prices for iron ore
Importance of Construction Accounting
Accurate accounting and financial management is crucial for the success of any construction project.
Poor financial management can lead to cost overruns, schedule delays, and loss of profits.
Accurate construction accounting helps project managers make informed decisions and allocate resources effectively.
Construction accounting helps construction companies identify areas where they can reduce costs and increase profits.
Effective construction accounting can help companies avoid disputes with clients, subcontractors, and suppliers.
Construction accounting helps to improve project profitability and reduce costs by providing real-time financial information.
It enhances project visibility and accountability by providing a clear picture of project expenses and revenues.
Construction accounting software automates manual processes, reduces errors, and saves time.
It helps to track project cash flow, which is crucial for ensuring project success.
Construction accounting helps to improve decision-making by providing real-time financial data.
Demographics of Construction Accounting
The construction accounting software market caters to small, medium, and large-scale construction companies.
Small construction companies account for the majority of construction accounting software users.
The construction accounting software market caters to both new and established construction companies.
Software Solutions for Construction Accounting
The construction accounting software market offers a range of solutions, including job cost accounting, project management, and financial management.
Popular construction accounting software solutions include Procore, QuickBooks, and Buildertrend.
Construction accounting software solutions can be customized to meet the specific needs of a construction company.
Opportunities in the Construction Accounting Market
The increasing demand for cloud-based construction accounting software provides significant opportunities for market growth.
The increasing adoption of mobile devices in construction provides opportunities for the development of new construction accounting software solutions.
The increasing complexity of construction projects creates a demand for advanced construction accounting software solutions.
The growing construction industry creates a demand for more efficient and cost-effective construction accounting solutions.
Key Trends in Construction Accounting
Cloud-based construction accounting software is becoming increasingly popular.
Construction accounting software is designed to automate various processes, such as invoicing, payroll, and project management.
Construction accounting software can help companies reduce manual errors and increase efficiency.
The use of mobile devices and applications for construction accounting is becoming increasingly common.
The use of artificial intelligence and machine learning in construction accounting is expected to increase in the coming years.
Construction Accounting Challenges
Keeping track of multiple projects and clients can be a major challenge in construction accounting.
Accurately tracking and allocating costs can be difficult, especially in complex construction projects.
Managing cash flow and ensuring that there are enough funds to complete a project can be a challenge in construction accounting.
Ensuring compliance with tax laws and regulations can be a challenge in construction accounting.
Keeping track of subcontractors and suppliers can be difficult in construction accounting.
Benefits of Construction Accounting
Accurate construction accounting can help companies make informed decisions about project budgets and costs.
Construction accounting helps companies keep track of expenses and profits, enabling them to make data-driven decisions.
Effective construction accounting can help companies improve their cash flow and reduce the risk of financial problems.
Accurate construction accounting helps companies comply with tax laws and regulations, avoiding costly penalties and fines.
Construction accounting helps companies maintain a positive relationship with clients, subcontractors, and suppliers by avoiding disputes.
In conclusion, construction accounting is a crucial aspect of the construction industry, providing valuable insights and data for informed decision-making. The 100 construction accounting statistics discussed in this blog post provide a comprehensive overview of the industry, including its trends, challenges, and benefits. Understanding these statistics will help construction companies make informed decisions, increase efficiency, reduce costs, and improve their bottom line. Whether you’re a construction company or a construction accountant, these statistics will provide valuable insights into the industry and help you stay ahead of the curve.